SOMERVILLE - The Borough Council recently approved two financial applications for development projects that could result in the construction of nearly 300 apartment units.

The applications were submitted for the state's Payment in Lieu of Taxes (PILOT) program, which allows municipalities to grant developers exemptions from property taxes for a period of time, by two developers — DGM Station House Renewal and A & A Somerville Urban Renewal.

DGM is looking to build 117 units at the former site of the Messenger Gazette Newspaper on Veterans Memorial Drive. The proposal calls for a four-story building.

A & A's project would include two mid-rise buildings at the intersection of Haynes Street and Kirby Avenue at the former Litgo facility site, which once housed an iron works and has a history of environmental contamination. Each building would be four stories tall and include 179 units combined.

"Somerville 20 years ago was on the verge of financial failure, people were leaving, businesses were closing leaving Main Street an empty and quiet place," Mayor Ellen Brain said. "Over the past 15 years, the borough has been implementing the plan that was expected to allow the borough to become much more economically strong and the only manner available to do this was through redevelopment."

Brain said the efforts of early planning are beginning to be seen in new mixed-use buildings in various redevelopment areas throughout the borough, such as The Edge on Main Street, which houses Wolfgang's Steakhouse and Starbucks.

"We are finally experiencing the beginnings of the economic revitalization of the borough," Brain said. "The objectives of this redevelopment strategy are to make the borough a vibrant, active place where residents and visitors can shop, dine and relax year-round, and to achieve this from new revenues generated — and not through increasing the taxes of current property owners."

The Cobalt apartments on Veterans Memorial Drive recently finished construction, as did the apartments on North Doughty Street.

Several other apartments are also under construction, including the apartment building on South Bridge Street near the train station, and several more have been proposed, including an apartment and townhouse complex at the Somerville landfill site off Route 206, which could result in more than 500 residential units.

Neither of the approved PILOT development projects include affordable housing units.

The redevelopment agreements still need final approval, which would happen in September, according to Somerville Borough Clerk and Administrator Kevin Sluka.

Both developers have completed their preliminary site plan work with the Planning Board, he said. After their redevelopment agreements are approved, they would then need to produce construction plans for review and approval, permits and then construction.

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The former Litgo site on Haynes Street in Somerville could become the site of a new apartment complex.(Photo: Nick Muscavage/Staff Photo)

The timeline of the process depends on the developers.

A & A recently underwent a change in shareholders. When the proposal was first submitted, the organization was known as 40 Haynes Street Redevelopment, holding corporate office in Manaplan.

If completed, the projects would bring to the borough an influx of cars and pedestrians on roadways and sidewalks.

"Feedback from the community is mainly very supportive, as residents are experiencing the continuing inflow of new business that create that sense of a thriving community," Brain said. "We do understand the view of some of the critics who believe that growth and more people will ruin the feel and look of Somerville."

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The borough pays attention to projects' modern structure while still retaining the appearance of what Somerville residents indicate maintains the look and feel of the borough, she said.

"At one time, the population of Somerville was 15,000, not the 12,400 we have today," Brain said. "Today, the population is starting to grow and Main Street has become a destination region-wide for shopping and dining. The new development we are seeing is beginning to strengthen the borough's financial position and allowing us to once again say that Somerville is downtown for all of Somerset County."